What were the total operating expenses for Hyper Kidz in 2022?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
) | | (121,289) | | (145,049) | | | | TOTAL LIABILITIES AND | | | | | | | | MEMBERS' (DEFICIT) | $ | 25,382 | $ | 20 | | |
BOOMERANG FRANCHISE, LLC STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2022, 2021 AND 2020
| 2022 | 2021 | 2020 | ||
|---|---|---|---|---|
| REVENUES | ||||
| Franchise sales | $ 4,279 | $ 3,950 | $ 6,913 | |
| Royalty fees | 84,618 | 68,260 | - | |
| Other revenue | - | 2,827 | - | |
| Royalty discount | - | (5,000) | ||
| Equipment sales | 11,473 | - | 246,351 | |
| TOTAL REVENUE | 100,370 | 70,037 | 253,264 | |
| COST OF SALES | - | - | 127,536 | |
| GROSS PROFIT | 100,370 | 70,037 | 125,728 | |
| OPERATING EXPENSES | ||||
| Professional fees | 23,106 | 8,577 | 20,025 | |
| Payroll and related costs | 12,000 | - | - | |
| General and administrative | 5,771 | 20,122 | 1,462 | |
| Advertising and Promotion | 4,208 | 385 | - | |
| TOTAL OPERATING EXPENSES | 45,085 | 29,084 | 21,487 | |
| OPERATING INCOME |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, the total operating expenses for the company in 2022 were $45,085. These expenses include several categories, offering insight into where the company's money was spent.
Specifically, the operating expenses break down into professional fees, payroll and related costs, general and administrative expenses, and advertising and promotion. In 2022, Hyper Kidz reported $23,106 in professional fees, $12,000 in payroll and related costs, $5,771 in general and administrative expenses, and $4,208 spent on advertising and promotion.
Understanding these costs can help a prospective Hyper Kidz franchisee anticipate the types and amounts of expenses they may encounter as they start and run their own franchise. Reviewing these figures over multiple years, as presented in the FDD, can further reveal trends and potential areas of cost management or investment.